XRX Watch

Xerox Corp. (XRX) moves off of my bear chart today with bull signals from Person's Proprietary Signal (pps), the parabolic sar and the fast stochastic. Also, a pretty good price rise.

	trend	adx	psar	pps	macd	macd trend	sto	sto zone
XRX $8.83

An hour before the markets close, XRX is trading nearly 4.5% above Tuesday's close and has traversed 3.3% intraday in a push above a three trading day range.

Person's Proprietary Signal and the parabolic sar, in the preceding bear phase, provided a very profitable 8.8% price decline over 15 days. The fast stochastic gave several false signals during the period.

I opened my own bear position on Aug. 11, the day of the bear signals, and jackrabbited out on Aug. 17 when the fast stochastic gave a bull signal that proved to be false. So my own profit proved to be 4%, which not terribly shabby for four trading days work.

The stock is trading below the 20-day and 200-day moving averages.

Reversal Levels

• $9.99, +13.1% (swing high)
• $9.15, +3.6% (200-day ma)
• $9.01, +2.0% (20-day ma)
• $8.83 <== You are here.
• $8.32, -5.8% (swing low)

I like XRX for a bull entry once it has cleared the 20-day moving average decisively. Otherwise, no. One cautionary item is the volume, which is running about half of Tuesday's.

Disclaimer

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.
• sto zone: green for bull phase, red for bear phase.